(GF) has announced a $16 billion investment to expand semiconductor manufacturing and advanced packaging capabilities across its New York and Vermont facilities. The initiative, developed in collaboration with the Trump Administration and leading technology companies, aims to onshore critical components of the GlobalFoundriessemiconductor supply chain and bolster U.S. technological leadership.
The investment comes at a pivotal moment for the U.S. semiconductor industry, which generated $527 billion in global sales last year and is projected to exceed $600 billion in 2024. With AI adoption accelerating, demand for power-efficient, high-bandwidth semiconductors is surging across datacenters, communications infrastructure, and AI-enabled devices.
"At GlobalFoundries, we are proud to partner with pioneering technology leaders to manufacture their chips in the United States—advancing innovation while strengthening economic and supply chain resiliency,” said Tim Breen, CEO of GlobalFoundries.
GF’s expansion is backed by major technology companies, including Apple, SpaceX, AMD, Qualcomm Technologies, Inc., NXP, and General Motors, all committed to reshoring semiconductor production.
The U.S. government has prioritized semiconductor manufacturing as a national security and economic imperative. The CHIPS and Science Act, which has allocated billions in incentives for domestic semiconductor production, is expected to strengthen U.S. supply chain resilience and create thousands of high-paying jobs.
"GlobalFoundries’ investment is a great example of the return of U.S. manufacturing for critical semiconductors,” said U.S. Secretary of Commerce, Howard Lutnick. “President Trump has made it a fundamental objective to bring semiconductor manufacturing home to America. Our partnership with GF will secure U.S. semiconductor foundry capacity and technology capabilities for future generations."
GF’s investment builds upon its existing $13 billion expansion plan, which includes the New York Advanced Packaging and Photonics Center—the first U.S.-based facility dedicated to silicon photonics packaging. The additional $3 billion will fund advanced research and development in packaging innovation, silicon photonics, and GaN-based power solutions.
The company’s 22FDX® and silicon photonics capabilities, alongside its GaN-based power solutions, position GF as a leader in AI-driven semiconductor innovation.
$16 billion investment isn't just about expanding facilities—it represents a pivotal shift in America’s technological trajectory. As semiconductor demand surges, particularly in AI, aerospace, automotive, and advanced communications, the ability to manufacture domestically isn’t merely a competitive advantage—it’s an economic and strategic imperative.
The global semiconductor industry has long been dominated by offshore production, leaving vulnerabilities in supply chain security and technological sovereignty. GF’s commitment—alongside government backing and corporate alliances—signals a profound effort to redefine U.S. semiconductor independence. But will it be enough to cement long-term competitiveness against powerhouse markets like Taiwan and South Korea?
This expansion isn't just about catching up—it’s about leading. The intersection of AI, silicon photonics, and power-efficient semiconductors is shaping the next generation of computing, and GF is positioning itself to drive that transformation from within U.S. borders. However, sustained leadership will require continued investment, policy alignment, and workforce development to ensure American innovation doesn’t just follow global trends—but sets them.